Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0314.01 Richard Sweetman x4333 HOUSE BILL 22-1412 House Committees Senate Committees Business Affairs & Labor A BILL FOR AN ACT C ONCERNING THE CONTINUATION OF TH E DIVISION OF GAMING IN THE101 DEPARTMENT OF REVENUE , AND, IN CONNECTION THEREWITH ,102 IMPLEMENTING THE RECOMMENDAT IONS CONTAINED IN THE103 2021 SUNSET REPORT BY THE DEPARTMENT OF REGULATORY104 AGENCIES.105 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) Sunset Process - House Business Affairs and Labor Committee. The bill implements the recommendations of the department HOUSE SPONSORSHIP Garnett and Van Winkle, Amabile, Roberts SENATE SPONSORSHIP (None), Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. of regulatory agencies in its sunset review and report on the division of gaming (division) in the department of revenue. Specifically: ! Sections 1 and 2 of the bill implement a portion of recommendation 1 of the report by continuing the division for 11 years, until 2033; ! Sections 1 and 3 implement a portion of recommendation 1 by continuing the regulation of sports betting by the division for 5 years, until 2027; ! Section 4 implements recommendation 2 by allowing the Colorado limited gaming control commission to delegate licensing duties to the division; ! Sections 5 and 6 implement recommendation 3 by changing the minimum age for a casino employee from 21 years of age to 18 years of age; ! Sections 7 and 8 implement recommendation 4 by designating the department of revenue's hearings division to conduct hearings under the "Fantasy Contests Act"; ! Section 9 implements recommendation 5 by repealing the requirement that internationally based internet sports betting personnel submit to a fingerprint-based criminal history record check; and ! Sections 10 through 14 implement recommendation 6 by subjecting payments of sports bet winnings to the "Gambling Payment Intercept Act". Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2 (23)(a)(VII); and add (28)(a)(VII) and (34)(a)(II) as follows:3 24-34-104. General assembly review of regulatory agencies4 and functions for repeal, continuation, or reestablishment - legislative5 declaration - repeal. (23) (a) The following agencies, functions, or both,6 are scheduled for repeal on September 1, 2022:7 (VII) The division of gaming created in part 2 of article 30 of title 8 44;9 (28) (a) The following agencies, functions, or both, are scheduled10 for repeal on September 1, 2027:11 HB22-1412-2- (VII) THE REGULATION OF SPORTS BETTING BY THE DIVISION OF1 GAMING PURSUANT TO PART 15 OF ARTICLE 30 OF TITLE 44.2 (34) (a) The following agencies, functions, or both, are scheduled3 for repeal on September 1, 2033:4 (II) T HE DIVISION OF GAMING CREATED IN PART 2 OF ARTICLE 305 OF TITLE 44.6 SECTION 2. In Colorado Revised Statutes, amend 44-30-206 as7 follows:8 44-30-206. Repeal of division - review of functions. Unless 9 continued by the general assembly, This part 2 is repealed, effective10 September 1, 2022, and those powers, duties, and functions of the director11 specified in this part 2 are abolished. The provisions of section 24-34-10412 (2) to (8) concerning a wind-up period, an analysis and evaluation, public13 hearings, and claims by or against an agency apply to the powers, duties,14 and functions of the director of the division SEPTEMBER 1, 2033. BEFORE15 THE REPEAL, THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW IN16 ACCORDANCE WITH SECTION 24-34-104.17 SECTION 3. In Colorado Revised Statutes, recreate and18 reenact, with amendments, 44-30-1515 as follows:19 44-30-1515. Repeal of part. T HIS PART 15 IS REPEALED,20 EFFECTIVE SEPTEMBER 1, 2027. BEFORE THE REPEAL, THE REGULATION OF21 SPORTS BETTING BY THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW22 IN ACCORDANCE WITH SECTION 24-34-104.23 SECTION 4. In Colorado Revised Statutes, amend 44-30-507 as24 follows:25 44-30-507. Delegation of licensing duties. The commission, AT26 ITS DISCRETION, may delegate LICENSING DUTIES DESCRIBED IN THIS PART27 HB22-1412 -3- 5 to the division. the authority to issue permanent and temporary support1 and key employee licenses, but the commission shall review and approve2 the issuance of all other licenses issued pursuant to this article 30.3 SECTION 5. In Colorado Revised Statutes, 44-30-103, amend4 (14) introductory portion as follows:5 44-30-103. Definitions. As used in this article 30, unless the6 context otherwise requires:7 (14) "Gaming employee" means any person employed by an8 operator or retailer hosting gaming to work directly with the gaming9 portion of the operator's or retailer's business, who shall be twenty-one10 EIGHTEEN years of age or older and hold a support license. Persons11 deemed to be gaming employees shall include: but shall not be limited to:12 SECTION 6. In Colorado Revised Statutes, amend 44-30-811 as13 follows:14 44-30-811. Persons conducting limited gaming. (1) No A15 person under the age of twenty-one years EIGHTEEN YEARS OF AGE shall16 NOT:17 (a) Be employed as a gaming employee;18 (b) Conduct, or assist in conducting, any limited gaming activity;19 and no such person shall OR20 (c) Manage or handle any of the proceeds from limited gaming.21 SECTION 7. In Colorado Revised Statutes, 44-30-1610, amend22 (2) as follows:23 44-30-1610. Grounds for discipline. (2) If it appears to the24 director, based upon credible evidence as presented in a written25 complaint, that a person is operating or offering to operate a fantasy26 contest without having obtained a registration or license, the director may27 HB22-1412 -4- issue an order to cease and desist the activity. The director shall set forth1 in the order the statutes and rules alleged to have been violated, the facts2 alleged to have constituted the violation, and the requirement that all3 unauthorized practices immediately cease. Within ten days after service4 of the order to cease and desist pursuant to this subsection (2), the person5 may request a hearing on the question of whether acts or practices in6 violation of this part 16 have occurred. The hearing shall be conducted7 pursuant to section 24-4-105 BY THE HEARINGS DIVISION OF THE8 DEPARTMENT IN ACCORDANCE WITH SECTION 44-30-1613.9 SECTION 8. In Colorado Revised Statutes, add 44-30-1613 as10 follows:11 44-30-1613. Hearings. F OR THE PURPOSES OF THIS PART 16,12 ADMINISTRATIVE HEARINGS SHALL BE CONDUCTED BY THE HEARINGS13 DIVISION OF THE DEPARTMENT.14 SECTION 9. In Colorado Revised Statutes, 44-30-1504, amend15 (7)(a) as follows:16 44-30-1504. Disclosure of information by corporate applicants17 - license required - investigation - criminal history record check -18 rules - definition. (7) (a) Each applicant for a sports betting license, with19 or as a supplement to the application, shall submit a set of fingerprints to20 the division; EXCEPT THAT AN APPLICANT WHOSE PRIMARY RESIDENCE IS21 LOCATED OUTSIDE OF THE UNITED STATES IS NOT REQUIRED TO SATISFY22 THIS REQUIREMENT UNLESS THE COMMISSION DETERMINES THAT THE23 APPLICANT IS SO REQUIRED. The division shall forward the fingerprints to24 the Colorado bureau of investigation for the purpose of conducting a state25 and national fingerprint-based criminal history record check utilizing26 records of the Colorado bureau of investigation and the federal bureau of27 HB22-1412 -5- investigation. Only the actual costs of the record check shall be borne by1 the applicant. Nothing in this subsection (7) precludes the division from2 making further inquiries into the background of the applicant.3 SECTION 10. In Colorado Revised Statutes, 26-13-118.7,4 amend (2) as follows:5 26-13-118.7. Gambling winnings - interception - rules.6 (2) Upon receipt from the registry operator of a payment and7 accompanying information pursuant to section 44-33-105 (2)(b), the state8 department shall notify the obligated parent in writing that the state9 intends to offset the parent's child support debt, child support arrearages,10 or child support costs against the parent's winnings from limited gaming,11 FROM SPORTS BETTING, or from pari-mutuel wagering on horse or12 greyhound racing. The notice shall MUST include information on13 CONCERNING the parent's right to object to the offset and to request an14 administrative review pursuant to the rules of the state board.15 SECTION 11. In Colorado Revised Statutes, 44-30-1503, amend16 (2)(a)(IV) as follows:17 44-30-1503. Licenses - rules. (2) (a) A license shall be revoked18 upon a finding that the licensee has:19 (IV) E XCEPT AS REQUIRED BY SECTION 44-30-1516, intentionally20 refused to pay a prize CASH WINNINGS in the licensee's possession to a21 person entitled to receive the prize CASH WINNINGS under this part 15.22 SECTION 12. In Colorado Revised Statutes, add 44-30-1516 as23 follows:24 44-30-1516. Duties of licensees under the gambling payment25 intercept act. B EFORE MAKING A PAYMENT OF CASH WINNINGS , A26 LICENSEE SHALL COMPLY WITH THE REQUIREMENTS OF ARTICLE 33 OF THIS27 HB22-1412 -6- TITLE 44.1 SECTION 13. In Colorado Revised Statutes, 44-33-102, amend2 (1)(c) and (1)(f) as follows:3 44-33-102. Legislative declaration. (1) The general assembly4 hereby finds and declares that:5 (c) Children are adversely affected when parents divert their6 financial support to limited gaming, SPORTS BETTING, and pari-mutuel7 wagering;8 (f) Victims of crime and all the people of the state are adversely9 affected when criminal offenders divert restitution to limited gaming,10 SPORTS BETTING, and pari-mutuel wagering;11 SECTION 14. In Colorado Revised Statutes, 44-33-103, amend12 (1) and (3) as follows:13 44-33-103. Definitions. As used in this article 33, unless the14 context otherwise requires:15 (1) "Licensee" means a licensee as defined in section 44-32-10216 (14), or an operator or retail gaming licensee under section 44-30-50117 (1)(b) or (1)(c), AN INTERNET SPORTS BETTING OPERATOR AS DEFINED IN18 SECTION 44-30-1501 (5), OR A SPORTS BETTING OPERATOR AS DEFINED IN19 SECTION 44-30-1501 (11).20 (3) "Payment" means cash winnings from limited gaming, FROM21 SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound22 racing payable by a licensee for which the licensee is required to file form23 W-2G, or a substantially equivalent form, with the United States internal24 revenue service.25 SECTION 15. Act subject to petition - effective date. This act26 takes effect September 1, 2022; except that, if a referendum petition is27 HB22-1412 -7- filed pursuant to section 1 (3) of article V of the state constitution against1 this act or an item, section, or part of this act within the ninety-day period2 after final adjournment of the general assembly, then the act, item,3 section, or part will not take effect unless approved by the people at the4 general election to be held in November 2022 and, in such case, will take5 effect on the date of the official declaration of the vote thereon by the6 governor.7 HB22-1412 -8-